Tsk, tsk. More bad news for 38 Studios and the state of Rhode Island. Apparently the developer missed the May 1 deadline for a payment of $1.25 million to the R.I. Economic Development Corporation. R.I. House Speaker Gordon Fox confirmed the news to WPRI on Tuesday. This means 38 Studios has now officially defaulted its $75 million dollar loan, adding more fuel to the fiery controversy.
The ECD issued an “emergency meeting” yesterday morning to discuss “an unexpected occurrence that requires immediate action to protect the public regarding the 38 Studios, LCC financing.” Fox admitted to being briefed by EDC executive director Keith Stokes on the matter, although he declined to provide details as to what the board itself will decide. Interestingly enough, 38 Studios has received $49.8 out of the $75 million in cash as of March 15, 2012.
And well… the results of the meetings were as follows:
Curt Schilling was harassed to no end by paparazzi and left the meeting without saying much of anything… But there was a particular revelation…
“Can you describe what is the situation that 38 Studios is in…?”
“Well, they didn’t make the May 1st payment, so that pretty much says it all…”
It’s all in the video above. *Sigh* I feel like Bernie Madoff’s ghostly presence is somehow involved in all of this. In short… Nobody knows what to make of 38 Studios anymore. What’s next in store in this intriguing tale I wonder?
UPDATE 1: 38 Studios was unable to meet payroll but was in the process of making the $1.125 million dollar payment. WPRI reported that the Rhode Island Economic Development Corporation (RIEDC) confirmed 38 Studios was unable to pay its workers.
UPDATE 2: The overdue check in the amount of 1.125 million was returned by the EDC back to 38 Studios, after the company’s chief financial officer admitted there were insufficient funds to cover it. Curt Schilling has been removed from the visionaries page of 38 Studios. CEO Jennifer MacLean who is on maternity leave, has also been taken off the site.